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At the Economic and Financial Affairs Council (ECOFIN) meeting held on 5 November 2024, an agreement for the adoption of the VAT in the Digital Age (“ViDA”) Directive was reached.
1 July 2028_____Single VAT registration and voluntary implementation of the platform economy. |
1 January 2030_____Mandatory adoption of the deemed supply rules for the Platform Economy. |
1 July 2030_____Mandatory adoption for Digital Reporting Requirements (DRR) and e-invoicing for cross border B2B supplies. |
1 January 2035_____Harmonisation of national e-invoicing with EU standards. |
DRR and e-invoicing
Beginning 1 July 2030, electronic invoicing will become the standard for issuing and receiving invoices for cross-border business-to-business (B2B) transactions. These electronic invoices, which must adhere to the European Standard (EN16931), will facilitate automated electronic processing. Consequently, unstructured formats, such as PDF invoices, will no longer be recognised as valid tax invoices. Additionally, data from these invoices will need to be reported to the respective tax authorities.
The deadline for the issuance of an invoice for cross-border transactions will be set at 10 days after the chargeable event has taken place.
The ECOFIN also agreed that the EU reporting system should be in place by 2030 and that all existing national systems should become interoperable with the EU system by 2035.
Platform economy
Short-term accommodation rental and road ride-sharing platforms will now be considered as the deemed supplier for VAT purposes for their underlying suppliers' transactions, meaning they will be responsible for charging and collecting VAT on behalf of the supplier.
Member States may opt to exclude two groups of underlying suppliers:
Those who provide their platforms with a VAT identification number, enabling them to continue recovering input VAT costs against their output VAT.
Those using the new 2025 SME VAT registration special scheme for small enterprises.
Additionally, in an effort to maintain consistency between Member States, the definition of short-term accommodation has been revised to 30 nights. Member States may also add further conditions to qualify this definition within their local laws.
It has been clarified that travel agents will not be considered deemed suppliers, and platform supplies are excluded from the Travel Operators Margin Scheme (TOMS).
Single VAT Registration
Following the implementation of the One Stop Shop and Import One Stop Shop systems, measures have been adopted to introduce the Single VAT Registration (SVR) to further reduce the need for VAT registration in multiple EU Member States. This measure will involve:
an extension of the One Stop Shop to certain B2C supplies of goods (such as domestic sales and supply of goods with installation) and to the movement of own goods and call-off stock; and
- the introduction of a mandatory reverse charge mechanism for domestic B2B supplies by non-established taxable persons.
As from 1 January 2027, the OSS scheme will also be applicable for the supply of gas, electricity, heating and cooling.
How can we help?
If you want to assess how your business will be impacted by the adoption of the ViDA Directive, our team is fully equipped to provide any assistance you may need. We can help you navigate all the intricacies and complications arising from this change in legislation. At PwC, we pride ourselves on our team of experienced professionals who are dedicated to offering comprehensive solutions, tailored to your specific needs. We are here to help guide you through any inquiries or challenges you may encounter.
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